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For Immediate Release                                                                        Contact: John Donnelly
July 15, 2009                                                                                                   202-225-3915

Area Congressional Delegation Seeks Meeting with Auto Recovery Czar to Discuss Chrysler Property Tax Matter

Washington, D.C.-Today, Congressmen Joe Donnelly and Dan Burton and Senators Evan Bayh and Richard Lugar sent a letter to Director of Recovery for Auto Communities and Workers Dr. Edward Montgomery requesting a meeting to discuss possible solutions to the fiscal problems that would be brought on by Chrysler's failure to pay timely its full personal property tax obligation to Howard County and the City of Kokomo.

Below is a copy of the letter:

Dear Dr. Montgomery:

We write to you today to make you aware of a developing matter relating to Chrysler Group, LLC ("Chrysler") and its property tax obligations to Howard County and the City of Kokomo.

As you know, the City of Kokomo is home to four Chrysler facilities that employ more than 6,000 Hoosiers. Chrysler is a valued part of the community and the backbone of the local economy. Not surprisingly, it also accounts for a significant portion of the real and personal
property tax levies of both the city and the county. 

For 2009, Chrysler's total property tax obligation to Howard County and the City of Kokomo is $16.7 million, or 15% of the area's total levy. Almost half (45%) of Northwestern Schools' transportation and debt service budget for 2009 would come from property taxes paid by Chrysler. We have enclosed for your reference a more detailed breakdown of the
extent to which the city, county and its school corporations rely on Chrysler's property tax payments. 

Property taxes in the State of Indiana are billed bi-annually. This year, spring payments were due June 19 and fall payments will be due November 10. Chrysler paid the spring installment of its real property tax debt ($2.2 million) on June 26, leaving an outstanding property tax debt of approximately $6.1 million. According to city and county officials, Chrysler's attorneys have confirmed that the entirety of the company's personal property tax debt payable in both 2009 and 2010 ($24.6 million) is the responsibility of "Old Chrysler," which remains in bankruptcy. Given the complexity of any bankruptcy proceeding and uncertainty as to the value of Old Chrysler's assets, we believe city and county officials are rightfully concerned about whether and when full payment might be forthcoming.

For all of the foregoing reasons, we ask that you meet with us to discuss possible solutions to the fiscal problems that would be brought on by Chrysler's failure to pay timely its full personal property tax obligation to Howard County and the City of Kokomo.

Thank you for your prompt personal attention and consideration in this matter.

Sincerely,

____________________ ____________________
Richard Lugar Evan Bayh
United States Senate United States Senate
____________________ ____________________
Dan Burton Joe Donnelly
Member of Congress Member of Congress

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After meeting with the management of three forcibly closed auto dealerships in Indiana, Rep. Dan Burton (R-IN) brought their message back to the U.S. House chamber in a speech to Congress last night.

FOR IMMEDIATE RELEASE                                                            CONTACT: John Donnelly
May 22, 2009                                                                                                   (202) 225-2276

**MEDIA ADVISORY**

Rep. Dan Burton's Statement On IN State Treasurer Mourdock's Objection Filing In Chrysler Bankruptcy Responds to Hundreds of Chrysler Employees in Kokomo, IN, Who Contacted the 5th Congressional District Offices

WASHINGTON, D.C. - After receiving hundreds of phone calls and emails from employees of Chrysler's transmission plant in Kokomo who expressed concern over Indiana State Treasurer Richard Mourdock's objection filing with the court overseeing Chrysler's bankruptcy, Rep. Dan Burton (R-IN) issued the following statement:

"I am very concerned about Chrysler employees, their families, and everything they are going through right now. This is a very difficult time for the auto industry, and I want to do everything I can to help.

"With respect to Chrysler's bankruptcy proceedings, I encourage all of the parties--Chrysler management, the UAW and the bond holders and other secured creditors--to work together with the court to, if necessary, renegotiate Chrysler's bankruptcy filing to respect the legal rights of all of Chrysler's creditors, and allow Chrysler to reorganize and emerge
from Chapter 11 as quickly as possible. This is a time when everyone needs to work together to find solutions.

"Again, I have deep sympathy for the many Hoosiers who are suffering because of this economic downturn. While many have already lost jobs, I recognize the fact that thousands of people are waiting in earnest to see if their jobs will survive Chrysler's restructuring process. In an effort to put Hoosiers back to work, I'm hosting a job fair at Indiana Wesleyan University on June 29th where dozens of local businesses will be looking to fill hundreds of job openings."

About Congressman Burton's H.I.R.E Job Far:

Where:
Student Center at Indiana Wesleyan University
4201 S. Washington Street
Marion, IN

When:
Monday, June 29th, from 9:00am to 5:00pm

Who:
Anyone looking for employment is invited to participate. Local
businesses will interview for a variety of jobs.

For more information or to register, visit burton.house.gov or call 1-800-382-6020

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Dear Colleague:

As you may be aware, leaders of President Barack Obama's Task Force on the Auto Industry have recently pushed Chrysler and General Motors to drastically reduce their dealer networks. The task force is driving the restructuring of both companies, which are planning to close plants and cut jobs all across the nation.

We write to express our serious concerns with this rapid and potentially disorderly elimination of thousands of dealerships. Each dealership creates an average of 52 neighborhood jobs and these positions typically pay twice the national average as other retail-sector jobs. This action, if implemented, could put approximately 150,000 people out of work.

Chrysler plans to drop at least 800 dealers and renegotiate franchise agreements with many of the remaining 2,400 dealers. Surviving dealers will be identified in a filing that may come as soon as Thursday, but even those on the list could face an uncertain future.

General Motors expects to begin notifying its independent dealers this week about its game plan to reduce its network of 6,246 U.S. stores by 42% to 3,605 by the end of next year.

Please join us in asking the Auto Industry Task Force to provide more transparency and somehow justify the forced closure of thousands of dealerships. If you would like to sign onto this letter, please contact Hasan Sarsour in Rep. Daniel B. Maffei's office at Hasan.Sarsour@mail.house.gov or at 5-3701.

Sincerely,

Daniel B. Maffei Member of Congress

Christopher Lee Member of Congress

By Brett Wallace
bwallace@chronicle-tribune.com
Published: Thursday, May 7, 2009 1:09 AM EDT
Moorehead Electric Co. is in the process of shutting down its operations after a long and proud 70-year history.

Employees and politicians say they’re saddened because the situation has come about through no fault of the company itself.

When Getrag suspended operations on the construction of its planned Tipton County facility in October, it left its 44 subcontractors on the hook for $45 million in unpaid invoices.

Getrag claims Chrysler, who had helped the German transmission maker settle on the Tipton location, owes that money to the unpaid companies. But Chrysler disagrees, and the two companies are now headed to court to settle the dispute.

Meanwhile, the 44 subcontractors have filed a joint suit in federal bankruptcy court but otherwise find themselves without rapid recourse.

For Jerry Albrecht, president of Moorehead Electric, it meant a gaping hole of $9.6 million in his company’s finances. Albrecht’s employees said he fought as hard as anybody ever could to find a way to keep the company operating. Ultimately, the task proved to be too much.

“We do feel there is a possibility of recovering the money, but it has to go through the bankruptcy court in Detroit,” Albrecht said.

…“Dan Burton and Joe Pearson seemed to be the only ones who actually tried to help out,” Albrecht said.

Burton’s office took the lead on a letter sent to the leaders of Chrysler and Getrag in March. The letter, which was signed by five Hoosier congressmen, urged those company officials to assist the local contractors affected by the deal.

Burton, Grant County’s representative in the U.S. House, said he felt terrible after hearing that Moorehead is now scheduled to shut down.

“If (the federal government) is going to try to bail out Chrysler, they should try to pay what’s owed to the subcontractors as well,” he said.

Burton said he’s sympathetic to the plight of the subcontractors, many of whom are located within his congressional district, but added he doesn’t believe there’s any plan at the federal level to assist these companies. There’s been some talk in Washington of a federal bailout of the automakers’ suppliers, but not of subcontractors that worked for them, Burton said.

At this time, he sees bankruptcy court as the answer for the companies.

“But that’s the thing that worries me, that the bankruptcy proceedings are not proceeding as fast as they should,” Burton said.

In Indianapolis, Pearson, who represents part of Grant County in the state House of Representatives, called it a shame and a tragedy that the situation has taken down Moorehead. He called Albrecht a person of high character and a pillar of the Grant County community.

“I’m so very disappointed we were not able to do things to help Jerry get through his problems,” Pearson said.

Pearson introduced language in the recently defeated state budget that would have guaranteed low-interest state loans to the contractors affected by the Getrag shutdown. Though funding was not attached to the proposal, Pearson said it would’ve at least created a mechanism by which the Indiana Economic Development Corp. could potentially offer loans to the affected companies.

Pearson also invited Albrecht to Indianapolis last week to speak to legislators. The pair had a meeting with several state and federal agencies to try to find a way to offer a short-term loan to Moorehead. None was found, he said.

“If there’s any way, it has to be done,” Pearson said. “It’s not a time for blame.”

Pearson said he favors using the state’s rainy day funds to help the companies affected by Getrag, but that idea has not enjoyed widespread support in Indianapolis.

At the time Getrag shut down the Tipton County project, Albrecht said about 200 people were working for Moorehead, including union electricians hired by the company on a per-project basis.

The contract he signed was the largest in the company’s history. Its nonpayment ended up being big enough to bring the company down.

More than 100 jobs have been eliminated in the past few weeks, and Albrecht said the final group of employees will wind down operations over the next few weeks.

“Some of the irony is this is that as we’re closing the doors, we’re still getting complimentary letters from customers like Howard Community Hospital and Muncie schools on the quality of work we’ve done and our excellent people,” Albrecht said. “That’s what makes this so tough.”

Albrecht believes that even in the recession, many of his workers will have no problem quickly finding another job.

“A lot of these people were with us for long periods of time, especially in Marion and Kokomo,” he said. “They’re great people.”

Burton said he hopes the former Moorehead Electric workers will utilize all of the community’s resources, including his office, if they need assistance.

Tim Eckerle of the Grant County Economic Growth Council said he expects Moorehead’s loss will be felt in the community.

“There are a number of electrical contractors, but they were the largest,” he said.

Moorehead was one of two Grant County companies, along with Gas City-based Industrial Maintenance Specialists, that have not received payment for services performed at Getrag.

According to Blair West, spokeswoman for the Indiana Economic Development Corp., Chrysler has a hearing with the Indiana Securities Commission on June 24, when the company could face fines or restitution to Tipton County for alleged failure to inform the county of issues related to the joint venture agreement it had with Getrag.

West said state Secretary of Commerce Mitch Roob has appealed to Washington officials that Chrysler should satisfy obligations with local contractors before receiving any additional federal bailout money.

“Unfortunately, it does not appear that the Treasury secretary’s proposal achieves that desired outcome,” West said.

She believes money will be available eventually when Tipton County and the IEDC are able to sell the unfinished Getrag site to another potential investor. At that time, money from the sale would first be used to satisfy outstanding obligations to contractors before going to the company, West said.

In the meantime, it appeared unlikely that Moorehead Electric will be around to see that happen.